Fiat Chrysler Automobiles and Guangzhou Automobile’s local joint venture recently started constructing their second manufacturing facility in the south China city of Guangzhou.

GAC Fiat Automobile Co., the 50/50 joint venture commented that the new facility would be “an important step to achieving local production for the Jeep brand, ” and besides the US brand that makes off-road models there would be room left for Fiat’s models to be produced there as well.

The new factory, an investment of 4.2 billion yuan ($677 million) should start churning out cars off the production line in 2016 and reach a full annual capacity of 160,000 units, complimenting GAC Fiat’s other plant in the central China city of Changsha, building the Fiat Viaggio and Ottimo compact sedans. The latter should move up to produce five models by 2018, at an installed capacity of 140,000 cars per year.

The new plant being constructed should take care of the planned Jeep Cherokee production, adding later the smallest model of the brand, the Renegade and another compact SUV. Guangzhou Auto did not offer details on what other Fiat models would be manufactured in the new location.

According to Chrysler Asia chief Mike Manley, Fiat Chrysler Automobiles ultimately wants to reach in China sales of 850,000 vehicles by 2018, a huge increase from the 130,000 cars delivered last year.

Via Automotive News Europe


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